Proto Labs, Inc. · NYSE:PRLB
Proto Labs — Q2 2023 Earnings Presentation
29 slides from Proto Labs's earnings presentation, Aug 4, 2023
Slide 1: Earnings Presentation Q2 2023
Earnings Presentation Q2 2023 August 4, 2023
Slide 2: Forward-looking Statements and Non-GAAP Measures
Forward-looking Statements and Non-GAAP Measures ▸ These slides may contain forward-looking ▸ Other factors that could materially affect actual ▸ Non-GAAP Financial Measures: Protolabs statements. These statements relate to future results, levels of activity, performance or management believes that
Slide 3: 2023 Priorities – Q2 Update
2023 Priorities – Q2 Update
Slide 4: 2023 Priorities – Q2 Update
2023 Priorities – Q2 Update ▸ Focused Priority Growth Areas ▸ Injection Molding ▸ Combined factory and network offer gaining traction ▸ CNC Machining – integrated comprehensive offer powered by Hubs network ▸ Strong growth in Q2 2023 driven by cross-selling between digital factory and digital networ
Slide 5: Launch of Quick-Turn Anodizing
Launch of Quick-Turn Anodizing ▸ We now offer accelerated anodizing and chromate plating on aluminum components in as fast as 4 days ▸ The added capability builds out our comprehensive CNC machining offer, which includes high-requirement plating options for AS9100 and ITAR needs, complex anodizing a
Slide 6: Customer Value: Prototyping to Production
CUSTOMER VALUE Prototyping to Production CHALLENGE Quick Stats ▸ Supplier of innovative lighting solutions for the automotive industry needed a manufacturing partner that could support a program from prototyping into production Automotive ▸ Some parts were too large and complex to mold through digit
Slide 7: Customer Value: Speed x Cost Efficiency
CUSTOMER VALUE Speed x Cost Efficiency CHALLENGE ▸ Airbus needed prototype kits manufactured to help validate design for transportation project Quick Stats ▸ The aerospace company needed quick turn prototyped parts for test trials, followed by production parts as the project developed Aerospace SOLU
Slide 8: Protolabs Q2 Awards
Protolabs Q2 Awards 2023 Frost & Sullivan Company of the Year for Digital Manufacturing ▸ Frost & Sullivan is a leading growth advisory and opportunity analytics firm ▸ Protolabs excelled across categories focused on visionary innovation, performance, and customer impact Manufacturing Leadership Cou
Slide 9: Q2 2023 Overview
Q2 2023 Overview
Slide 10: Financial Highlights | Q2 2023 YoY
Financial Highlights | Q2 2023 YoY Revenue ($M) (1.0)%1 • Revenue of $122.3 million, down (1.0)%1 YoY Growth in CNC machining and 3D printing offset by $126.9 year-over-year declines in injection molding and sheet metal $122.3 Hubs generated growth of 79.7% YoY in constant currencies Q2 2022 Q2
Slide 11: Revenue by Service | Q2 2023 YoY
Revenue by Service | Q2 2023 YoY Injection Molding - Revenue CNC Machining - Revenue ($M) (8)%* ($M) 0%* $53.4 $48.8 $48.2 $48.3 Q2 2022 Q2 2023 Q2 2022 Q2 2023 3D Printing - Revenue Sheet Metal - Revenue ($M) ($M) 6%* (24)%* $20.0 $21.0 $5.2 $3.9 Q2 2022 Q2 2023 Q2 2022 Q2 2023 *YoY change reflecte
Slide 12: Revenue by Service | Q2 2023 QoQ
Revenue by Service | Q2 2023 QoQ Injection Molding - Revenue CNC Machining - Revenue ($M) (6)% ($M) 0% $51.9 $48.8 $48.1 $48.3 Q1 2023 Q2 2023 Q1 2023 Q2 2023 3D Printing - Revenue Sheet Metal - Revenue ($M) ($M) (2)% (7)% $21.3 $21.0 $4.2 $3.9 Q1 2023 Q2 2023 Q1 2023 Q2 2023 12
Slide 13: Revenue by Region | Q2 2023
Revenue by Region | Q2 2023 YoY Change YoY Change YoY Change Revenue % by Region $M Q2 23 Q2 22 Overall Constant Fx* Constant Fx* Q2 2023 Excl. Japan Americas $96.3 $100.7 (4)% (4)% 21% Europe $25.9 $23.4 11% 13% Japan - $2.9 (100)% (100)% 79% TOTAL $122.3 $126.9 (4)% (3)% (1)% Americas Europe *YoY
Slide 14: Q2 2023 Detailed Financial Information
Q2 2023 Detailed Financial Information
Slide 15: Financial Results | Q2 2023
Financial Results | Q2 2023 $M, Except QoQ YoY per share amounts Q2 23 Q1 23 Change Q2 22 Change Revenue $122.3 $125.9 (2.9)% $126.9 (3.7)% Non-GAAP 44.1% 43.4% 70 bps 45.9% (180) bps Gross Margin* Non-GAAP Operating Margin* 8.9% 7.2% 170 bps 12.6% (370) bps Non-GAAP $0.33 $0.30 11.7% $0.46 (28.9)%
Slide 16: YoY GAAP to Non-GAAP P&L | Q2 2023
YoY GAAP to Non-GAAP P&L | Q2 2023 Three Months Ended Jun. 30, 2023 Three Months Ended Jun. 30, 2022 $ in thousands GAAP Adjustments Non-GAAP* GAAP Adjustments Non-GAAP* Revenue $122,265 - $122,265 $126,902 - $126,902 Cost of Revenue 69,142 (803) 68,339 69,480 (870) 68,610 Gross Profit $53,123 $803
Slide 17: QoQ GAAP to Non-GAAP P&L | Q2 2023
QoQ GAAP to Non-GAAP P&L | Q2 2023 Three Months Ended Jun. 30, 2023 Three Months Ended Mar. 31, 2023 $ in thousands GAAP Adjustments Non-GAAP* GAAP Adjustments Non-GAAP* Revenue $122,265 - $122,265 $125,859 - $125,859 Cost of Revenue 69,142 (803) 68,339 72,083 (808) 71,275 Gross Profit $53,123 $803
Slide 18: Cash Flow and Balance Sheet | Q2 2023
Cash Flow and Balance Sheet | Q2 2023 $M Q2 23 Q1 23 Q2 22 FY 18 Operating Cash Flow $9.3 $22.6 $13.3 Capital Expenditures $3.4 $3.4 $3.0 Share Repurchases $8.9 $21.1 $5.2 Cash and Investments* $102.8 $104.7 $110.1 Debt* $0 $0 $0 *Balance Sheet items as of the end of the period. 18
Slide 19: Q3 2023 Financial Outlook
Q3 2023 Financial Outlook
Slide 20: Outlook | Q3 2023
Outlook | Q3 2023 Q3 2023 Revenue Q3 2023 Non-GAAP* EPS Revenue $118M - $126M Non-GAAP EPS $0.26 - $0.34 % Growth YoY (constant Fx ex. Japan) (3)% - 3% % Growth YoY (34)% - (14)% Q3 2023 Outlook Commentary* ▸ Expect foreign currency to have a $1.5 to $2.0 million favorable impact on Q3 2023 revenue
Slide 21: Thank You
Thank You
Slide 22: Appendix
Appendix
Slide 23: GAAP to NON-GAAP Reconciliation | Revenue by Region
GAAP to NON-GAAP Reconciliation | Revenue by Region Proto Labs, Inc. Comparison of GAAP to Non-GAAP Revenue Growth by Region (In thousands) (Unaudited) Three Months Ended Three Months Ended June 30, 2023 June 30, 2022 % Foreign % Change 2 3 GAAP Currency1 Non-GAAP GAAP Change Organic Revenues United
Slide 24: GAAP to NON-GAAP Reconciliation | Revenue by Service
GAAP to NON-GAAP Reconciliation | Revenue by Service Proto Labs, Inc. Comparison of GAAP to Non-GAAP Revenue Growth by Service Line (In thousands) (Unaudited) Three Months Ended Three Months Ended June 30, 2023 June 30, 2022 % % Foreign Change 2 3 GAAP Currency1 Non-GAAP GAAP Change Organic Revenues
Slide 25: GAAP to NON-GAAP Reconciliation | Gross Margin
GAAP to NON-GAAP Reconciliation | Gross Margin Proto Labs, Inc. Reconciliation of GAAP to Non-GAAP Gross Margin (In thousands) (Unaudited) Three Months Ended June 30, 2023 2022 Revenue $ 122,265 $ 126,902 Gross Profit 53,123 57,422 GAAP gross margin 43.4% 45.2% Add back: Stock-based compensation exp
Slide 26: GAAP to NON-GAAP Reconciliation | Operating Margin
GAAP to NON-GAAP Reconciliation | Operating Margin Proto Labs, Inc. Reconciliation of GAAP to Non-GAAP Operating Margin (In thousands) (Unaudited) Three Months Ended June 30, 2023 2022 Revenue $ 122,265 $ 126,902 Income from operations 5,608 5,201 GAAP operating margin 4.6% 4.1% Add back: Stock-base
Slide 27: GAAP to NON-GAAP Reconciliation | EBITDA
GAAP to NON-GAAP Reconciliation | EBITDA Proto Labs, Inc. Reconciliation of GAAP Net Income to EBITDA and Adjusted EBITDA (In thousands) (Unaudited) Three Months Ended June 30, 2023 2022 Revenue $ 122,265 $ 126,902 GAAP net (loss) income (383) 2,557 GAAP net (loss) income margin -0.3% 2.0% Add back:
Slide 28: GAAP to NON-GAAP Reconciliation | EPS
GAAP to NON-GAAP Reconciliation | EPS Proto Labs, Inc. Reconciliation of GAAP to Non-GAAP Net Income per Share (In thousands, except share and per share amounts) (Unaudited) Three Months Ended June 30, 2023 2022 Non-GAAP net income, adjusted for stock-based compensation expense, amortization expense
Slide 29: GAAP to NON-GAAP Reconciliation | Q3 2023 Outlook
GAAP to NON-GAAP Reconciliation | Q3 2023 Outlook Proto Labs, Inc. Reconciliation of GAAP to Non-GAAP Guidance (In thousands, except share and per share amounts) (Unaudited) Q3 2023 Guidance Low High GAAP diluted earnings per share $ 0.07 $ 0.15 Add back: Stock-based compensation expense 0.14 0.14 A